Construction Law/new price


good morning , please advice me

we use fedic 4th edition reprinted 1992.

in case of extra quantities requested by the employer, according to clause 51.1 the contractor can introduce claim for a new price.
in the particular conditions, this is allowed only if the extra quantity exceed 30% the contract quantity.
assume the extra quantity is 70%, in case we deal for a new price, the new price will be applied for which quantity? all 170% or the extra quantity 70% or the quantity over 30% which is 40%   

thank you

Dear Mohammed,

Thanks for your question.

The interpretation of the contract provision which you have cited is that; the Engineer has the contractual right to issue site instruction to vary the works within plus or minus 30% of the contract quantities and thereafter, any excess of this would give the Contractor the contractual rights to claim additional cost.

In some particular condition; the contractor's claim for additional cost can be under any of the following:

1. Reviewing the rates for any of such additional item which is in excess of the plus or  minus 30% by allowing for increase in overheads.

2. Allowing for certain percentage over and above the valuation of this items of works concerned using the contract rates. This percentage is added as a multiplying factor over the cumulative total of the items and the additional quantities involved.

Please note that; the intention of this is not to increase the rate because of escalation or increase in the cost of materials except where the cost of such materials is directly related to be determined by quantity...for instance; rate (per cub. meter)for  a 5,000 cubic meter of concrete in the contract will be lower than for 100 cubic meter if order is to be place separately, instead of 5,100cub meter order placed at once.

Finally, to you question; if the extra quantity is 70%, the original contract quantity would be valued at BOQ rate / contract rate and then; the extra 30% out of the 70% would also be valued at BOQ rate or contract rate. The ones to be evaluated on new rate (claim# would be 70% less #30% - the limit for which the Engineer has rights# i.e. the remaining 40%; would be the quantity to be claimed for new price #claim).

Hope this helps?


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